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Why the Earnings Streak Will Continue for GoDaddy (GDDY)

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Looking for a stock that might be in a good position to beat earnings at its next report? Consider GoDaddy Inc. (GDDY - Free Report) , a firm in the Internet Services-Delivery industry, which could be a great candidate for another beat.

This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. In fact, in these reports, GDDYhas beaten estimates by at least 15% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, GDDYexpected to post a loss of 3 cents per share, while it actually produced breakeven earnings, a significant beat. Meanwhile, for the most recent quarter, the company looked to deliver a loss of 18 cents per share, when it actually saw loss of 15 cents per share instead, representing a 16.7% surprise.

Thanks in part to this history, recent estimates have been moving higher for GoDaddy. In fact, the Earnings ESP for GDDYis positive, which is a great sign of a coming beat.

After all, the Zacks Earnings ESP compares the most accurate estimate to the broad consensus, looking to find stocks that have seen big revisions as of late, suggesting that analysts have recently become more bullish on the company’s earnings prospects. This is the case for GDDYas the firm currently has a Zacks Earnings ESP of 36.36%, so another beat could be around the corner.

This is particularly true when you consider that GDDYhas a great Zacks Rank #2(Buy) which can be a harbinger of outperformance and a signal for a strong earnings profile. And when you add this solid Zacks Rank to a positive Earnings ESP, a positive earnings surprise happens nearly 70% of the time, so it seems pretty likely that GDDYcould see another beat at its next report, especially if recent trends are any guide.

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